GM CEO Mary Barra Says 2023 Challenges Were Just 'Bumps In The Road,' Automaker Confident In All Aspects Of Future Business
Portfolio Pulse from Adam Eckert
General Motors Co (GM) has reinstated its 2023 guidance and announced a $10 billion accelerated share repurchase program, with immediate retirement of $6.8 billion worth of stock. CEO Mary Barra expressed confidence in overcoming past challenges, including labor strikes and execution issues with Ultium and Cruise. The company expects adjusted earnings of $7.20 to $7.70 per share and adjusted automotive free cash flow of $10.5 to $11.5 billion. GM also plans to increase its dividend by 33%. GM shares rose 8.8% following the news.
November 29, 2023 | 4:34 pm
News sentiment analysis
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POSITIVE IMPACT
GM reinstated its 2023 guidance with higher earnings and cash flow projections, announced a significant share repurchase program, and plans to increase its dividend. The company's confidence in its future business and resolution of past issues may positively influence investor sentiment.
The reinstatement of guidance and the announcement of a share repurchase program and dividend increase are strong positive signals to the market, indicating that GM's management is confident in the company's financial health and future prospects. This is likely to be viewed favorably by investors, potentially leading to a short-term increase in stock price, as evidenced by the 8.8% rise in GM shares at the time of publication.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100